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The Effect of Foreign Direct Investment on Income Distribution in Developing Countries | ||
| TANMIYAT AL-RAFIDAIN | ||
| Volume 42, Issue 138, 2023, Pages 112-131 PDF (790.16 K) | ||
| Document Type: Research Paper | ||
| DOI: 10.33899/tanra.2023.136128.1243 | ||
| Authors | ||
| sura Abdul Razzaq AL Hassan* ; Mufeed D.Y. -Dhanoon Aullma | ||
| Department of Economics, College of Administration and Economics, University of Mosul, Mosul, Iraq | ||
| Abstract | ||
| Foreign direct investment (FDI) not only contributes to economic growth and development but also affects the way income is distributed in host countries, especially in developing countries. The objective of this research is to analyze the effect of FDI on income distribution in developing countries. The research adopted a fixed effects model, using panel data from fourteen developing countries for the period 2000-2020. The estimated model took into account the effect of the unemployment rate, government spending as a percent of GDP, and inflation rate, in addition to the FDI as a percent of GDP, to explain income distribution expressed as the share of the poorest 40% as a percent the share of the richest 20%. The empirical results showed that FDI exacerbates income distribution in developing countries, but its effect is very weak. | ||
| Keywords | ||
| FDI; Income Inequality; Fixed Effects Model | ||
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